The tax filing deadline is fast approaching and just a few short months away. If your taxes are deducted from your paycheque, then a few days of getting your information together and filing will put your mind at ease until the next tax deadline approaches. However, if you are self-employed and owe a tax debt, or are nervous that you will owe one, then you need to figure out how you are going to pay it. When you are barely making ends meet, owing taxes will only increase your stress level.
You might be able to make an arrangement with CRA to pay your taxes but only after you have completed a financial disclosure form including a budget. CRA will only consider your basic living expenses after seeing your budget and disallow payments for other things like credit cards. They will decide, based only on those basic living expenses, what you should have left over and often request a monthly payment that is too high that it will be difficult to pay and maintain your basic living expenses let alone payment to other creditors like credit cards and bank loans. If you cannot pay your taxes then you run the risk of further collection action collection action, including garnishing your wages, placing a lien on your home, or freezing bank accounts, to get what is owed.
The first thing to do is call us. We can help deal with all of your debt and remove any garnishees that might be in place.
The Bankruptcy and Insolvency Act provides protection to people with financial problems. Not all options involve bankruptcy – there is also a proposal option which is similar to a debt consolidation.
How can we help?
- Your creditor or the CRA has to remove the garnishment
- Interest will stop
- The debt may be reduced
- You will have a single monthly payment
How do you begin the process of applying for protection under this Act? Your best approach is to arrange a free initial consultation with us. We have the knowledge and experience in explaining the options available. Call us. Its not too late.